The involvement of financial institutions and employers to provide loan programs to employees and to deduct from an employee's future earnings the pay back for such loans is known in the art. It is also known that the cost and administrative burdens to the employer of offering such a benefit is sufficient to cause the employer to not offer such a benefit in an employee benefits program. Additionally, the risk of an employee defaulting on such a loan is sufficient to deter employers and/or financial institutions from offering such a benefit. Further, if offering a standardized loan program, it is generally done with restrictive qualification criteria, thereby limiting the use of such a program to a marginal group of employees. Such criteria makes it difficult for all but the most highly qualified or the most needy employees to be offered such a loan for uses as significant as the purchasing or refinancing of a home.
It is therefore desired to provide funding of and access to an investment vehicle that transfers the risks of such an employer and/or financial institution sponsored and managed employee benefit to an investment community. Such a transfer of risk will allow for more employers and employees to have access to and receive funding from such an investment vehicle than is currently available with employer and/or financial institution sponsored and managed employee benefits programs.